Property auctions fetching more realtistic market values

Nov 5 2008 by Tony McDonough, Liverpool Daily Post

VALUES at property auctions are now very different to those of 12 to 18 months ago.

This is not simply due to the turmoil in recent weeks; the credit and market squeeze has been with us now for many months, and prices at auction have returned to realistic market values.

They are offered at substantial discounts to the levels previously achieved.

The upside of the current market is that it actually makes the auction an even more attractive proposition for both the vendor and purchaser.

For the vendor, a sale at auction is immediate, quick, certain and legally binding.

A sale at auction can also provide a Certificate of Value, confirming that the best possible price was achieved by this method of sale.

This is particularly useful for trustees when selling off land or property, and also for executors involved with probate.

For the purchaser, there are real bargains to be had with property prices low at a time when rental demand and rental values are high. Would be or existing buy-to-let landlords can achieve very strong yields and buy at low cost.

Terraced property can be picked up for between £40,000 and £50,000 and achieve rentals of £500 per month.

Auctions can also offer an affordable step onto the property ladder for the first- time buyer particularly if the purchaser is keen and willing to refurbish and decorate the property themselves.

Participating in an auction as buyer or seller is simple and auctioneers will always offer advice as to what is the best thing to do.

A good way of learning the process is by attending as an observer the first time and asking questions of the auction team.

Just be sure to ask the questions before the auction – raising your hand during the bidding could mean that you walk away with more than you bargained for.